Digital Readiness and Action Prioritization in Small Cosmetics Manufacturers

Authors

  • Tariq Hasan Fadhil* Distance Learning Master of Management Study Program, Faculty of Economics and Business, Universitas Telkom, Bandung, Indonesia
  • Jurry Hatammimi Department of Management, Faculty of Economics and Business, Center of Excellence for Digital Business Ecosystem, Universitas Telkom, Bandung, Indonesia

DOI:

https://doi.org/10.55047/jekombital.v4i3.1181

Keywords:

Data Governance, Factory Operations, Industry Readiness, Mixed Methods, Transformation Roadmap

Abstract

Small cosmetics manufacturers frequently adopt digital applications before their internal routines, data controls, and workforce capabilities are ready to support them. This condition creates operational fragmentation rather than integrated transformation. This study assesses digital readiness, identifies the factors that support and constrain transformation, and develops a staged set of managerial priorities for a resource-limited cosmetics manufacturer in Indonesia. An explanatory sequential mixed-method design was used. The first stage applied the Indonesia Industry 4.0 Readiness Index survey to 33 respondents across five readiness dimensions, while the second stage used a cross-functional focus group discussion involving seven participants to interpret the survey results. The company obtained an overall readiness score of 1.21, which indicates initial readiness. People and culture had the strongest score at 1.87, whereas management and organization had the weakest score at 0.21. The evidence shows that employee willingness, management awareness, and an existing internal application provide a starting point, but progress is limited by the absence of a roadmap, formal team, dedicated budget, systematic training, and dependable real-time data. The study implies that early digital transformation should prioritize disciplined data entry, clear process ownership, and capability development before large technology investment.

References

Cascavilla, A., D’Adamo, I., Grosso, C., & Trusiani, C. (2026). Bridging digital tools and human skills: A sustainable competence framework for implementing digital product passports in the cosmetics industry. Journal of Environmental Management, 397, 128281. https://doi.org/10.1016/j.jenvman.2025.128281

Freitas, N., Rocha, A. D., & Barata, J. (2026). Data management in industry: concepts, systematic review and future directions. Journal of Intelligent Manufacturing, 37(2), 799–827. https://doi.org/10.1007/s10845-025-02570-z

Ghobakhloo, M., Iranmanesh, M., Vilkas, M., Grybauskas, A., & Amran, A. (2022). Drivers and barriers of Industry 4.0 technology adoption among manufacturing SMEs: a systematic review and transformation roadmap. Journal of Manufacturing Technology Management, 33(6), 1029–1058. https://doi.org/10.1108/JMTM-12-2021-0505

Hanelt, A., Bohnsack, R., Marz, D., & Antunes Marante, C. (2021). A systematic review of the literature on digital transformation: Insights and implications for strategy and organizational change. Journal of Management Studies, 58(5), 1159–1197. https://doi.org/10.1111/joms.12639

James, T. G., DeJonckheere, M., & Guetterman, T. C. (2024). Integrating transformative considerations and quantitative results through a participant selection joint display in explanatory sequential mixed methods studies. Journal of Mixed Methods Research, 18(1), 14–30. https://doi.org/10.1177/15586898221149470

Kraus, S., Durst, S., Ferreira, J. J., Veiga, P., Kailer, N., & Weinmann, A. (2022). Digital transformation in business and management research: An overview of the current status quo. International Journal of Information Management, 63, 102466. https://doi.org/10.1016/j.ijinfomgt.2021.102466

Leso, B. H., Cortimiglia, M. N., & Ghezzi, A. (2023). The contribution of organizational culture, structure, and leadership factors in the digital transformation of SMEs: a mixed-methods approach. Cognition, Technology & Work, 25(1), 151–179. https://doi.org/10.1007/s10111-022-00714-2

Matarazzo, M., Penco, L., Profumo, G., & Quaglia, R. (2021). Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective. Journal of Business Research, 123, 642–656. https://doi.org/10.1016/j.jbusres.2020.10.033

Nasiri, M., Saunila, M., & Ukko, J. (2022). Digital orientation, digital maturity, and digital intensity: determinants of financial success in digital transformation settings. International Journal of Operations & Production Management, 42(13), 274–298. https://doi.org/10.1108/IJOPM-09-2021-0616

Okfalisa, O., Mahyarni, M., Anggraini, W., Saktioto, S., & Pranggono, B. (2022). Assessing Digital Readiness of Small Medium Enterprises: Intelligent Dashboard Decision Support System. International Journal of Advanced Computer Science and Applications, 13(4), 98–108. https://doi.org/10.14569/IJACSA.2022.0130412

Pingali, S. R., Singha, S., Arunachalam, S., & Pedada, K. (2023). Digital readiness of small and medium enterprises in emerging markets: The construct, propositions, measurement, and implications. Journal of Business Research, 164, 113973. https://doi.org/10.1016/j.jbusres.2023.113973

Purbaya, N. C., & Noviaristanti, S. (2024). Digital Transformation Formulation AT PT. Rohto Laboratories Indonesia. International Journal of Engineering Business and Social Science, 2(4), 1152–1163. https://doi.org/10.58451/ijebss.v2i04.146

Rahmatulloh, I., Noviaristanti, S., & Awaluddin, M. (2024). Industry 4.0 Readiness and Roadmap in Food Industry: Insights from Indonesian Manufacturing Enterprises Using Explanatory Sequential Mixed-Method Design. Eduvest - Journal of Universal Studies, 4(2), 396–419. https://doi.org/10.59188/eduvest.v4i2.1023

Sagala, G. H., & Őri, D. (2024). Toward SMEs digital transformation success: a systematic literature review. Information Systems and E-Business Management, 22(4), 667–719. https://doi.org/10.1007/s10257-024-00682-2

Silva, R. P., Mamede, H. S., & Santos, V. (2025). A new proposed model to assess the digital organizational readiness to maximize the results of the digital transformation in SMEs. Journal of Innovation & Knowledge, 10(1), 100644. https://doi.org/10.1016/j.jik.2024.100644

Soluk, J., & Kammerlander, N. (2021). Digital transformation in family-owned Mittelstand firms: A dynamic capabilities perspective. European Journal of Information Systems, 30(6), 676–711.

Tufano, A. (2023). Data governance in smart factories: Consistency rules for improved data quality in logistics & operations. Manufacturing Letters, 37, 57–60. https://doi.org/10.1016/j.mfglet.2023.07.019

Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022

Downloads

Published

2026-05-29

Issue

Section

Articles

How to Cite

Fadhil, T. H., & Hatammimi, J. (2026). Digital Readiness and Action Prioritization in Small Cosmetics Manufacturers. JURNAL EKONOMI KREATIF DAN MANAJEMEN BISNIS DIGITAL, 4(3), 778-788. https://doi.org/10.55047/jekombital.v4i3.1181